Most organizations today, even nonprofits and small companies, face the following challenges:
- Stakeholder demand for high efficiency and transparency
- Inspection agencies and regulators have become unpredictable
- Logarithmic growth of relationships with third parties and related risks
- High cost of identifying risks and meeting the requirements of upstream organizations
- High consequences of not eliminating risks and meeting the requirements
In order to meet these challenges, organizations create units and programs such as efficiency management programs, risk management programs, compliance programs and regulations, public relations, but unfortunately these programs and organizational units usually do not have the necessary impact and burden the organization which had the following consequences:
- High cost
- Lack of risk transparency
- Inability to determine the risks associated with working with third parties
- Impossibility to measure the effectiveness of managed risks
- Daily negative surprises
When these activities are overloaded, the likelihood of setting wrong and ineffective goals, unfavorable strategies, and ineffectiveness increases.
Governance and management activities including integrating leadership, risk and compliance does not mean creating a very large organizational unit, but rather creating an approach to ensure that the right information is available to the right people at the right time so that the organization’s goals are properly formulated and achieved. Identify appropriate and necessary controls to determine uncertainties. Implementing this solution has the following advantages:
- Reduction in costs
- Reduce parallel activities
- Reduce damage to activities and impact on the organization’s operations
- High quality information
- Faster and more efficient access to information
- Proper implementation of organizational processes
Leading, managing and ensuring risk control and compliance with rules and requirements are three tools that help the organization achieve its goals. Leadership is a combination of institutionalized processes implemented by senior managers that represent the structure of the organization and how to manage and direct in order to achieve goals. Risk management is the forecasting and management of risks that may make it difficult for an organization to achieve its goals. Compliance refers to the extent to which the organization relates to policies, procedures, rules and regulations. Governance and Management both in business and IT, can help you to achieve these goals and Digital Transformation is the solution.
If we have learned anything from 2020, it’s that the future is unpredictable and it’s up to IT leaders to decide whether to view unexpected technological advancements as disruptions or opportunities. While you may not be able to predict the future, what you can do is better prepare your organization to thrive through disruptions with the help of digital transformation.